Valued at a market cap of $23.5 billion, Atmos Energy Corporation (ATO) is a natural gas-only distributor. Headquartered in Dallas, Texas, the company operates through two segments: Distribution and Pipeline and Storage.
Companies valued at $10 billion or more are generally described as “large-cap stocks,” and Atmos Energy definitely fits the criterion. ATO delivers natural gas to over 3.3 million distribution customers in over 1,400 communities across eight states located primarily in the South. Along with this, it engages proprietary pipeline and storage businesses.
The natural gas utility dipped 2.5% from its 52-week high of $154.55 recorded on Mar. 4. In addition, ATO stock has gained 5.9%over the past three months, surpassing the broader Nasdaq Composite ($NASX), which dipped 8.8% over the same period.
Longer term, ATO has soared 6.5% on a YTD basis, outperforming NASX’s 5.4% loss. Additionally, shares of Atmos Energy have jumped 27.8% over the past 52 weeks, whereas the NASX has climbed 11.5% in the same period.
Since last year, ATO has been trading above its 50-day and 200-day moving averages.
Shares of ATO rose 1.9% following its Q1 2025 results on Feb. 4, which topped Wall Street expectations with earnings of $2.23 per share, and the company posted a total operating revenue of $1.2 billion. In addition, for fiscal 2025, the company expects earnings to be in the range of $7.05 per share - $7.25 per share. Also, Atmos Energy increases its annual dividend by 8.1% to $3.48.
Moreover, compared to its rival, New Fortress Energy Inc. (NFE) has lagged behind ATO. Shares of NFE have declined 60% over the past 52 weeks and slipped 21.3% YTD.
Despite ATO’s outperformance, analysts remain cautiously optimistic about its prospects. Among the 12 analysts covering the stock, there is a consensus rating of “Moderate Buy,” and Atmos Energy is currently trading below the mean price target of $154.25.
